Shiba Inu, the second largest coin, saw its price increase, and its token burning mechanism also relayed a similar trend. According to the Shiba Inu burn tracker Shibburn.com, the number of SHIB tokens burned increased by approximately 21.76% in the last 24 hours. This increase in SHIB burns it looks positive for the same part price in the future, but actual combustion numbers reveal a persistent challenge to making meaningful progress.
Shiba Inu burn rate increases by 21%
Shiba Inu has seen lackluster burn activity over the past couple of weeks, resulting from similar lackluster price action, activity, and interest in the cryptocurrency. As such, daily SHIB burns have run through approximately 21 million SHIB tokens burned, which is much less than typical daily burning activity required for bullish momentum.
According to Shibburn.com, the last 24 hours saw $26,221,803 worth of SHIB tokens collectively sent to SHIB burn wallets, representing a 21.76% increase from the 21 million SHIB tokens burned over the past 24 hours. previous 24 hours.
Despite the 21.76% increase in burning activity, the total number of tokens burned remains disappointing. This amount, while an improvement over previous days over the past few weeks, pales in comparison to the huge circulating supply of Shiba Inu, which currently stands at over 589,000 billion tokens. To put this into perspective, even with this improved consumption rate, it would take decades to significantly reduce the token supply.
SHIB burns are particularly one of the many methods that the Shiba Inu community has put in place in order to contribute to regular price growth. The more SHIB tokens are burned and removed from circulation, the better the Shiba Inu price becomes. Interestingly, Shiba Inu lead developer Shytoshi Kusama once noted that it would be possible to burn 99% of the SHIB supply.
The current pace highlights the need for a more consistent approach to token burning if the goal of reducing supply and fostering long-term price appreciation is to be achieved. However, the recent 21.76% increase could be the first step of many increases to come.
Price rebound brings relief to SHIB
The recovery of the broader crypto market has provided a temporary boost to the Shiba Inu price. Shiba Inu managed to capitalize on the 3.48% market-wide rise and is currently trading at $0.00002222, an increase of approximately 3% in the last 24 hours.
Shiba Inu price technical analysis the action shows that it is looking to cross the upper trendline of a falling wedge pattern. A confirmed breakout of the descending wedge alongside market-wide capital inflows would drive the Shiba Inu price higher in the coming weeks.
Featured image created with Dall.E, chart from Tradingview.com